The key concept in the new classical approach to the aggregate supply curve is
A) the impact of imperfect information on business decisions.
B) the impact of changes in the price level on real balances.
C) the inverse relationship between the real interest rate and desired investment spending.
D) the crowding out of investment spending by government spending.
A
You might also like to view...
As the real interest rate decreases, the quantity of saving supplied ________ and the quantity of saving demanded ________.
A. decreases; increases B. does not change; does not change C. increases; decreases D. increases; increases
The nation's structural unemployment will increase when
A) bad economic policies send the economy into a recession. B) there is influx into the labor market of new college graduates. C) there is an increase in post-Christmas layoffs of workers. D) an increase in textile imports displaces older textile workers who do not have the skills necessary to find new jobs.
After the housing bubble burst, consumer confidence plummeted and housing sales dropped to all-time lows. This caused the demand curve for normal goods to shift
a. inwards b. outwards c. stay constant d. none of the above
Researchers use cost-of-illness studies for all of the following except to:
a. compare two or more treatment options when the medical outcome is identical. b. increase public awareness of the cost of treating certain diseases. c. compare the relative efficiency of treating various conditions. d. study the burden of a disease. e. determine the low-cost option to treat a disease.